China’s rare earth exports rose sharply in May, increasing by 23 per cent compared to April, according to a report by Reuters. Total shipments reached 5,864.60 tonnes—the highest monthly figure recorded in the past year. This is because the April restrictions do not apply to all rare earth products that China exports. One can expect further clarity later in June.
China’s overall exports grew by 4.8 per cent in May compared to the same period last year. However, this was slower than April’s 8.1 per cent growth and marked the weakest export performance in three months.
Export curbs still affecting global industry
The rise in exports came despite China imposing export restrictions in April, which blocked some overseas shipments. These curbs targeted specific types of rare earths and magnets, disrupting global supply chains.
The restrictions have impacted India and forced several European auto parts factories to halt production. Citing previous customs data, Reuters reported that China’s magnet exports had already dropped by half in April.
Semiconductor companies in Europe have also warned that they may be forced to stop production within weeks if the shortage continues.
Chinese data on June 20 to outline actual impact of supply curb
The June 9 data does not distinguish between product types, so a complete picture of the curbs’ impact will only be available in a more detailed data release scheduled for June 20.
China exports a wide range of rare earth products, but the current trade data does not break down the figures by product category. The upcoming report is expected to offer more clarity on which items have been affected.
Slight growth in 2025 so far
From January to May 2025, China exported 24,827 tonnes of rare earths—a modest increase from 24,266.5 tons during the same period last year, according to customs data cited by Reuters.
What are rare earth minerals
Rare earths are a group of 17 minerals used in high-tech products such as electric vehicles, smartphones, and wind turbines. China remains the world’s top supplier of these essential materials.
Trade talks between China and the US resume
In mid-May, China and the US agreed to pause most tariffs for 90 days. Talks between the two countries are currently ongoing, with trade officials meeting in London today. The decision followed a phone call last week between their top leaders.
According to CNBC-TV18 reports, top Indian ministers are also considering sending an industry delegation to Beijing for talks, as India has not received import approvals for rare earth magnets from China since April 4, 2025.